Posted on 09/14/2007 2:48:44 PM PDT by Nick Danger
Three and a half years after launching a high-profile legal attack on Linux, The SCO Group has filed for Chapter 11 bankruptcy protection.
The Lindon, Utah-based company long has maintained that it had enough money to fight its costly lawsuits against IBM, Novell, Red Hat (which sued SCO proactively), AutoZone and DaimlerChrysler. But on Friday, a month after losing on a crucial legal ruling, the company admitted a grimmer picture.
"The Board of Directors of The SCO Group have unanimously determined that Chapter 11 reorganization is in the best long-term interest of SCO and its subsidiaries, as well as its customers, shareholders and employees," the company said in a statement. Added Chief Executive Darl McBride, "We want to assure our customers and partners that they can continue to rely on SCO products, support and services for their business-critical operations."
Chapter 11 protects a company's assets from creditors during a reorganization.
IBM didn't comment, but Novell said it is evaluating its options. "U.S. bankruptcy law automatically stays the court case. We're assessing our options for how to pursue our interests," Novell said. A court case was scheduled to begin Monday to determine how much SCO owed Novell as a result of last month's ruling, according to Groklaw, a site that's closely monitored the case.
All of SCO's court cases now are on hold, a company representative said. SCO has a complicated history. It went public as Linux seller Caldera Systems, then acquired the Unix business from the Santa Cruz Operation and renamed itself The SCO Group. It then scrapped its Linux business and sued IBM and others, alleging that Big Blue violated its Unix contract by moving proprietary Unix technology into open-source Linux.
However, the company's legal case was dealt a crushing blow in August, when the federal judge overseeing its case, Dale Kimball, concluded "that Novell is the owner of the Unix and UnixWare copyrights."
In the meantime, SCO has been trying to enliven its ever-shrinking business, selling its UnixWare software, and to expand into the mobile-device software market.
In June, SCO reported a loss of $1.1 million for the quarter ended April 30 on revenue of $6 million, a decline from $7.1 million in the year-earlier quarter. Legal costs that quarter totaled $1.1 million, a major decrease from $3.8 million the year before.
I just saw that on Google News....EXCELLENT!
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Bwaaaa ha ha again!
AutoZone? DaimlerChrysler?...........Did they sue Home Depot too?...................
Game over.....
So, have all the lawyers been paid? I hope not.
SCO Files For Chapter 11 Bankruptcy
Friday, September 14 2007 @ 03:29 PM EDT
*******************************EXCERPTS**************************
The text of the press release:
******************************************
The SCO Group Files Chapter 11 to Protect Assets as It
Addresses Potential Financial and Legal Challenges
Friday September 14, 3:21 pm ET
Reorganization ensures business as usual and that assets remain for
continued support of customers and channel partners
LINDON, Utah, Sept. 14 /PRNewswire-FirstCall/ -- The SCO Group, Inc. ("SCO") (Nasdaq: SCOX - News), a leading provider of UNIX® software technology and mobile services, today announced that it filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. SCO's subsidiary, SCO Operations, Inc., has also filed a petition for reorganization. The Board of Directors of The SCO Group have unanimously determined that Chapter 11 reorganization is in the best long-term interest of SCO and its subsidiaries, as well as its customers, shareholders, and employees.
The SCO Group intends to maintain all normal business operations throughout the bankruptcy proceedings. Subject to court approval, SCO and its subsidiaries will use the cash flow from their consolidated operations to meet their capital needs during the reorganization process.
"We want to assure our customers and partners that they can continue to rely on SCO products, support and services for their business critical operations," said Darl McBride, President and CEO, The SCO Group. "Chapter 11 reorganization provides the Company with an opportunity to protect its assets during this time while focusing on building our future plans."
The SCO Group has filed a series of first day motions in the Bankruptcy Court to ensure that it will not have any interruption in maintaining and honoring all of its commitments to its customers. The motions also address SCO's continued ability to pay its vendors, the retention of various professional advisors, and other matters.
They used to be such a good little player...
Game over now...
Couldn’t of happened to a nicer bunch of folks.
Long awaited ROFLOL!!!!
See the link at #7 for the list of creditors....some lawyers on the list....
Ping!
Did they ever produce a real product?............
They got a lot of money up front, then switched to a more risk based fee structure, as I recall.
So they plan to keep suing customers?
O.K., I’m pretty much in the dark about this outfit. What’s the story here and why is it a good thing that it’s filing for bankruptcy? Inquiring minds wanna know...!
Couldn’t happen to a nicer bunch of scumbags.
Good....one more warning label I won't have to pay for......
Search FR for SCO...
Basically a software “business” run by lawyers that took on more than they could chew - so to speak...
Good!
Now let’s hope that scummy company that sued RIM and just announced lawsuits against a bunch of other companies, even though their patents were voided, goes out of business!
Ed
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